Justia U.S. 10th Circuit Court of Appeals Opinion Summaries

PetroChina Canada bought ten large heat-exchanger units from Kelvion’s Oklahoma plant for use in PetroChina’s oil and gas operations. Their contract included a mandatory forum-selection clause subjecting the parties to Canadian jurisdiction. After a dispute over unanticipated delivery costs that PetroChina refused to pay, Kelvion brought suit in Oklahoma. It asserted quantum meruit and unjust enrichment claims, arguing the forum-selection clause did not apply to its equitable claims. The district court disagreed, concluding the forum-selection clause applied, and dismissed the suit under the doctrine of forum non conveniens. Finding no error in judgment, the Tenth Circuit affirmed the district court’s dismissal for forum non conveniens. View "Kelvion, Inc. v. PetroChina Canada Ltd." on Justia Law

Plaintiffs were all former members of the Fundamentalist Church of Jesus Christ of Latter-Day Saints (“FLDS”), which illegally practiced polygamy. In 2016, plaintiffs filed suit against the FLDS Prophet, Warren Jeffs, and Jeff’s lawyers, the law firm of Snow Christensen & Martineau (“SC&M”) and one of its partners, Rodney Parker, alleging defendants: (1) directly worked with Jeffs to create a legal framework that would shield him from the legal ramifications of child rape, forced labor, extortion, and the causing of emotional distress by separating families; (2) created an illusion of legality to bring about plaintiffs’ submission to these abuses and employed various legal instruments and judicial processes to knowingly facilitate the abuse; (3) held themselves out to be the lawyers of each FLDS member individually, thus creating a duty to them to disclose this illegal scheme; and (4) intentionally misused these attorney-client relationships to enable Jeffs’ dominion and criminal enterprise. Jeffs defaulted, and the district court dismissed every cause of action against the remaining defendants under Fed. R. Civ. P. 12(b)(6). The issue before the Tenth Circuit Court of Appeals stemmed from the district court’s dismissal of all claims against SC&M and Parker (collectively “defendants”). Reviewing the facts in the light most favorable to plaintiffs, the Court affirmed in part and reversed in part. For fifteen plaintiffs who brought legal malpractice and breach of fiduciary duty claims, the Court determined they pled facts sufficient to survive a motion to dismiss: a factual question remained for each of these plaintiffs regarding whether (and how long) equitable tolling applies to their limitations periods, and whether individual implied attorney-client relationships existed. Twelve plaintiffs pled facts sufficient to survive dismissal of their fraudulent and negligent misrepresentation claims, again, there was a factual question regarding when they discovered their claims, thereby starting the running of the statutory period, and whether an implied attorney-client relationship existed. Civil RICO claims were deemed forfeited as inadequately presented in plaintiffs’ opening brief. With respect to TVPRA claims, nine plaintiffs pled facts sufficient to pass muster under the plausibility standard and thus survived dismissal. View "Bistline v. Jeffs" on Justia Law

Keshia Porter appeals the district court’s dismissal of her complaint as time barred. Porter’s husband, Delandis Richardson, was killed in an auto accident in Campbell County, Wyoming, on November 25, 2014. Within two years, on November 21, 2016, Vance Countryman filed a “Petition/Action for the Appointment of Wrongful Death Representative” in the District Court of Campbell County, Wyoming. Countryman requested appointment as Richardson’s WDR under Wyo. Stat. Secs. 1-38-101 to 105. The state court judge expressed concern that appointing Countryman, who would be acting as an attorney in the wrongful death suit, could pose ethical problems. On April 27, 2017, Porter filed an “Amended Petition/Action for the Appointment of Wrongful Death Representative” asking the court to appoint her as Richardson’s WDR. It stated that “[t]his petition is ‘made in a separate action brought solely for appointing the wrongful death representative’ pursuant to Wyo. Stat. Ann. 1-38-103(b).” The document was filed in the existing state court action. On July 10, 2017, the court appointed Porter the WDR for Richardson. Porter then filed this action against Ford Motor Company on August 7, 2017, as Richardson’s WDR. Ford moved to dismiss, arguing that Porter’s claims were barred by Wyoming’s two-year limitations period for wrongful death actions. The district court agreed and dismissed the complaint with prejudice. Porter timely appealed. The Tenth Circuit determined that a WDR petition was filed by another putative representative within two years and Porter was appointed WDR in that state court action. She then filed the present suit within thirty days of her appointment. On these facts, the Court concluded Porter’s complaint was timely under Wyo. Stat. 1-38-103(b)(ii). Accordingly, the Court reversed and remanded this case for further proceedings. View "Porter v. Ford Motor Company" on Justia Law

This case arose out of the efforts the IRS made to investigate the tax liability of High Desert Relief, Inc. (“HDR”), a medical marijuana dispensary in New Mexico. The IRS began an investigation into whether HDR had improperly paid its taxes, and specifically whether it had improperly taken deductions for business expenses that arose from a “trade or business” that “consists of trafficking in controlled substances.” Because HDR refused to furnish the IRS with requested audit information, the IRS issued four summonses to third parties in an attempt to obtain the relevant materials by other means. HDR filed separate petitions to quash these third-party summonses in federal district court in the District of New Mexico, and the government filed corresponding counterclaims seeking enforcement of the summonses. HDR argued that the summonses were issued for an improper purpose—specifically, that the IRS, in seeking to determine the applicability of 26 U.S.C. 280E, was mounting a de facto criminal investigation pursuant to the Controlled Substances Act. HDR also asserted that enforcement of section 280E was improper because an "official [federal] policy of non-enforcement” of the CSA against medical marijuana dispensaries had rendered that statute’s proscription on marijuana trafficking a “dead letter” incapable of engendering adverse tax consequences for HDR. The petitions were resolved in proceedings before two different district court judges; both judges ruled in favor of the United States on the petitions to quash, and separately granted the United States’ motions to enforce the summonses. HDR challenged these rulings on appeal. The Tenth Circuit determined HDR was unable to overcome the government’s demonstration of good faith under United States v. Powell, 379 U.S. 48 (1964), and its alternative “dead letter” argument was without merit. View "High Desert Relief v. United States" on Justia Law

Tony Kourianos worked as a coal miner for more than 27 years before filing a claim for benefits under the Black Lung Benefits Act (“BLBA”). His claim was reviewed through a three-tiered administrative process. Ultimately, the Benefits Review Board (“BRB”) found that he was entitled to benefits. The BRB also found that Kourianos’s last employer, Hidden Splendor Resources, Inc., was the “responsible operator” liable for paying those benefits. Hidden Splendor’s insurer, Rockwood Casualty Insurance Company, petitioned the Tent Circuit Court of Appeal for review of the BRB’s decision: (1) challenging the administrative law judge’s (“ALJ”) decision prohibiting Hidden Splendor from withdrawing its responsible operator stipulation; and (2) contending the BRB incorrectly found that Kourianos was totally disabled and entitled to benefits. Finding no abuse of discretion in the BRB decision, the Tenth Circuit denied Rockwood's petition. View "Rockwood Casualty Insurance v. Director, OWCP" on Justia Law

The city of Fort Collins, Colorado, enacted a public-nudity ordinance that imposed no restrictions on male toplessness but prohibited women from baring their breasts below the areola. In response, Free the Nipple, an unincorporated association, and two individuals, Brittiany Hoagland and Samantha Six (collectively, Plaintiffs ), sued the City in federal district court, alleging (among other things) the ordinance violated the Equal Protection Clause, U.S. Const. amend. XIV, sec. 1, and they asked for a preliminary injunction to halt enforcement of the ordinance. The district court agreed and enjoined the City, pending the resolution of the case s merits, from implementing the ordinance to the extent that it prohibits women, but not men, from knowingly exposing their breasts in public. The City then brought this interlocutory appeal to challenge the injunction. The narrow issue presented for the Tenth Circuit's review asked whether the district court reversibly erred in issuing the preliminary injunction. The Court found the trial court did not, affirmed the district court's judgment and remanded the case for further proceedings. View "Free the Nipple v. City of Fort Collins" on Justia Law

Plaintiff Anupama Bekkem filed suit against her employer, the Department of Veterans Affairs, based on numerous instances of discrimination and retaliation she allegedly experienced while working as a primary care physician for the VA in the Oklahoma City area. The district court dismissed some of her claims under Rule 12(b)(6) and granted summary judgment in favor of Defendant on the remaining claims. Plaintiff appealed. Finding no reversible error in the trial court's grant of summary judgment on Plaintiff’s claims of discrimination based on unequal pay and retaliation based on her non-selection for the position as North May clinic medical director, and dismissal of her claim of discrimination based on a reprimand she received, the Tenth Circuit affirmed. However, the Court reversed summary judgment as to Plaintiff's claim of retaliation relating to the reprimand, and remanded that claim for further proceedings at the district court. View "Bekkem v. Wilkie" on Justia Law

In 2008, James Nelson was seriously injured while riding his bicycle on United States Air Force Academy land. He and his wife, Elizabeth Varney, sued the Academy under the Federal Tort Claims Act (“FTCA”), seeking damages. The district court ruled in their favor and awarded them approximately $7 million in damages. In a previous appeal, the Tenth Circuit reversed that decision, holding that the Colorado Recreational Use Statute (the “CRUS”) shielded the Academy from liability. But the Court remanded on the issue of whether an exception to the statute’s liability shield applied. On remand, the district court held that an exception did apply, and reinstated its prior judgment. The Academy appealed. Finding no reversible error, the Tenth Circuit affirmed. View "Nelson v. United States" on Justia Law

Plaintiff Millard Lance Lemmings (“Lance”) was born at a government-operated hospital in Ada, Oklahoma. During his birth, Lance suffered a brain injury. Lance and his parents, suing as “parents and next friends,” sued Defendants Comphealth, Inc. and Comphealth Medical Staffing, Inc. for medical malpractice under the Federal Tor Claims Act. The parties settled the case on September 28, 2001. Lance’s parents were simultaneously engaged in a state court proceeding regarding guardianship of Lance. On the morning of October 25, 2001, Lance’s parents filed an application for an order approving the agreed settlement, attorneys’ fees, and litigation costs in the state court action. The state district court appointed Lance’s parents as the guardians of Lance’s estate. Following that court order, Lance’s parents withdrew their state court application for an order approving the settlement. Later that day, Lance’s parents appeared before the federal district court for a fairness hearing regarding the settlement and represented him at the fairness hearing. The district court did not appoint a guardian ad litem. Appellants Barbara Lemmings and Oran Hurley, Jr. filed a motion fifteen years later seeking to intervene, in which they contended: (1) the parties presented materially inaccurate information to the district court in 2001 in order to obtain the district court’s approval; (2) the district court did not have jurisdiction to approve the settlement because it did not appoint a guardian ad litem to represent Lance; and (3) a conflict of interest existed between Lance and his parents which required the appointment of a guardian ad litem. Belatedly, Appellants further sought access to the 2001 sealed fairness hearing transcript. In the motion to intervene, Appellants asserted that Lance’s parents spent a large portion of the proceeds and abandoned him in 2011, leaving him in the care of his paternal grandmother, Appellant Barbara Lemmings. The state district court appointed her Lance’s guardian in January 2017. After Ms. Lemmings suffered a health issue, the state court appointed Appellant Oran Hurley, Jr. as co-guardian. Appellants sought to reopen the district court action, vacate the dismissal, intervene, and rewrite the terms of the Irrevocable Governmental Trust in order to access the proceeds contained in that trust. The United States objected. The Tenth Circuit rejected Appellants' contention that Federal Rule of Civil Procedure 17 required the formal appointment of a guardian ad litem, and rejected the contention that an inherent conflict of interest always existed where a minor was represented by a parent who was a party to the same lawsuit as the minor. View "Kile v. United States" on Justia Law

This case involved an alleged worldwide Ponzi scheme and the antifraud provisions of the federal Securities Act of 1933 and the Securities Exchange Act of 1934. Defendant Charles Scoville operated an internet traffic exchange business through his Utah company, Defendant Traffic Monsoon, LLC. The Securities and Exchange Commission (“SEC”) initiated this civil enforcement action, alleging Defendants were instead operating an unlawful online Ponzi scheme involving the fraudulent sale of securities. In this interlocutory appeal, Scoville challenged several preliminary orders the district court issued at the outset, including orders freezing Defendants’ assets, appointing a receiver, and preliminarily enjoining Defendants from continuing to operate their business. The Tenth Circuit upheld those preliminary rulings, finding the SEC asserted sufficient evidence to make it likely that the SEC would be able to prove that Defendants were operating a Ponzi scheme. View "SEC v. Traffic Monsoon" on Justia Law